Inflation, debt spur budget reform calls
Economists, researchers, labour leaders and civil society representatives have urged the government to adopt a more inclusive and citizen-focused national budget, warning that rising inflation, unemployment, higher VAT rates and growing debt burdens are placing increasing pressure on ordinary citizens.
The call was made during a day-long dialogue titled “People’s Budget Parliament 2026”, organised by the Democratic Budget Movement (DBM) at the Liberation War Museum auditorium in Agargaon, Dhaka.
Speakers highlighted that low- and middle-income groups are the most affected by persistent inflation, rising food and fuel prices, higher utility tariffs and shrinking employment opportunities.
They also expressed concern that mounting foreign debt and increasing interest payments are limiting the government’s capacity to invest in development and public welfare.
The discussion emphasised the need for fairness in budget allocations, expanding social safety nets, strengthening food security and agriculture, and creating employment opportunities.
Participants also called for balanced revenue collection and prudent debt management policies.
Several speakers advocated for a more democratic and decentralised budget formulation process, with greater district-level budgeting, empowered local governments, and broader citizen participation.
They noted that the current budget structure remains highly centralised and argued that devolving fiscal authority to local administrations could improve the efficiency and impact of development initiatives.
The importance of institutionalising open budget discussions, social audits, and citizen engagement mechanisms was also highlighted.
Participants included Kazi Maruful Islam, Sharmind Neelormi, Salma Akhtar, agricultural economist Jahangir Alam, Rajekuzzaman Ratan, Golam Moazzem, Md Jamal Uddin Miah of BKMEA, Nuzhat Jabin, and Nazmul Ahsan Miraz, with Lidy Nacpil joining virtually.
At the conclusion of the event, attendees adopted the “People’s Budget Declaration 2026”, calling on the government to formulate a national budget that is more inclusive, transparent and employment-focused.
The declaration also urged measures to strengthen the financial capacity of local governments and enhance public participation in the budget-making process.
